BB&T reports 3rd quarter diluted EPS of $0.64; or $0.70 adjusted; Record assets exceed $200 billion

WINSTON-SALEM, North Carolina, Oct. 15, 2015 /PRNewswire/ -- BB&T Corporation (NYSE: BBT) today reported quarterly earnings for the third quarter of 2015. Net income available to common shareholders was $492 million, compared to $512 million earned in the third quarter of 2014. Earnings per diluted common share totaled $0.64 for the quarter, compared to $0.70 for the third quarter of last year. Excluding merger-related and restructuring charges, net income available to common shareholders was $539 million, up 4.5% compared to $516 million earned in the third quarter of 2014. Adjusted earnings per diluted share was $0.70 compared to $0.71 in the earlier quarter.

"We are pleased to report strong results for the quarter, driven by healthy organic loan and deposit growth and the acquisition of Susquehanna Bancshares," said Chairman and Chief Executive Officer Kelly S. King. "We also announced an agreement to acquire National Penn, of Allentown, Pennsylvania. These acquisitions will significantly expand our presence in the mid-Atlantic region and vault us to #4 deposit market share in Pennsylvania.

"I am excited to share that the successful acquisition of Susquehanna, coupled with organic balance sheet growth, has pushed us above $200 billion in assets, which is a significant milestone.

"We had a strong overall quarter with higher revenues and improved net interest margin, continued excellent results in asset quality, and strong capital and liquidity," said King. "Revenues were $2.5 billion, up $155 million, or 6.6% compared to the third quarter of 2014. The Susquehanna acquisition contributed approximately $150 million in revenues since August 1, and we look forward to continued growth within our newly expanded footprint."

Third Quarter 2015 Performance Highlights

• Taxable equivalent revenues were $2.5 billion for the third quarter, up $122 million from the second quarter of 2015
  • Net interest income was up $153 million, driven by $130 million from Susquehanna for the two months it was included
  • Net interest margin was 3.35%, up eight basis points due to higher yields on Susquehanna loans
  • Noninterest income was down $31 million primarily due to insurance income
  • Fee income ratio was 42.1%, compared to 46.3% in the prior quarter, reflecting dilution from Susquehanna and lower insurance revenue

• Noninterest expense was $1.6 billion, down $59 million compared to the second quarter
  • The prior quarter included a $172 million loss on early extinguishment of debt
  • Susquehanna's operations added $74 million in costs, including $37 million in personnel expense and $10 million in occupancy and equipment expense
  • Merger-related and restructuring charges were $52 million higher as a result of increased activity related to Susquehanna
  • The adjusted efficiency ratio was 59.2%

• Average loans and leases held for investment increased $10.6 billion compared to the second quarter of 2015
  • Loans acquired in the Susquehanna transaction totaled $12.9 billion, with an $8.5 billion impact on average balances for the quarter
  • The Bank of Kentucky contributed $1.0 billion in average loan growth
  • Excluding these acquisitions
    • Total average loans increased $1.0 billion, or 3.2% annualized
    • Total average loans excluding residential mortgage increased 6.7%
    • Average C&I loans increased 6.7%
    • Average direct retail loans increased 11.9%
    • Average other lending subsidiaries loans increased 20.6%

• Average deposits increased $12.0 billion compared to the prior quarter
  • Deposits assumed in the Susquehanna acquisition totaled $14.1 billion, with a $9.4 billion impact on average balances for the quarter
  • The Bank of Kentucky added approximately $1.4 billion in average deposits
  • Excluding these acquisitions, average noninterest-bearing deposits increased $721 million
  • Average interest-bearing deposit costs were 0.24%, flat compared to the prior quarter
  • Deposit mix remained strong, with average noninterest-bearing deposits representing 30.7% of total deposits, compared to 31.5% in the prior quarter
  • The change in composition was driven by the mix of deposits acquired from Susquehanna and The Bank of Kentucky

• Asset quality remained strong
  • Nonperforming assets increased $15 million, or $5 million excluding Susquehanna, from June 30, 2015
  • Delinquent loans increased $227 million, or $4 million excluding Susquehanna loans
  • The allowance for loan and lease losses was 1.08% of loans held for investment, or 1.19% excluding Susquehanna loans that were initially recorded at fair value
  • The allowance for loan loss coverage ratio was 2.49 times nonperforming loans held for investment at September 30, 2015, versus 2.55 times at June 30, 2015

• Capital levels remained strong across the board
  • Common equity tier 1 to risk-weighted assets was 10.1%, or 9.8% on a fully phased-in basis
  • Tier 1 risk-based capital was 11.6%
  • Total capital was 14.1%
  • Leverage capital was 9.9%
  • Tangible common equity to tangible assets was 7.7%

Earnings presentation and Quarterly Performance Summary